The Infulence of Leadership Styles on Organisational Performance of Logistics Company

8/18/2019 The Infulence of Leadership Styles on Organisational Performance of Logistics Company

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Leadership in Logisticindustry

Paper Review Submitted by: Kshitij Gupta

Date: 21!"2!1#


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$it%e

The infuence o leadership ston organizational perormanc

logistics companies.&y'Saeminah Samad and (aini )bdu%%ah%: *acu%ty o+ &usiness ,anag

,a%aysian .nstitute o+ transportation/

.SS0: 1'323!',edwe%% 4ourna%s 2!12


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&ac5ground 623! words7

$he current environment in the organi8ations has beccomp%e9 and high%y competitive/ ,a%aysia as a deve%opinis cha%%enging many mature countries in a number o+ indu

.n todays g%oba% and dynamic competitive environment torgani8ationa% %eader and manager are becoming mor;mpherica% studies have strong%y put emphasis that %ea

one o+ the most important +actor +or organi8ationa% perand success/

Empirical research is a way o+ gaining 5now%edge by direct and indirect observation or e9perience/


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Literature Review

Leadership Styles: Leadership has been dbased on various perspectives

• Senior and *%emming described %eadership as +o

1/ =oncern +or tas5 which is a%so re+erred aoriented

2/ =oncern +or peop%e or peop%e centred or eoriented

/ Directive or authoritarian or autocratic %eaders

"/ $ransactiona% or trans+ormationa% %eadership

)ccordin to *%emmin the %ast two have rece


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• ,c=rimon views %eadership based on +our parc%assic- transactiona%- trans+ormationa% and orga

1. Classic thin5ing o+ %eadership re+er to hdecisions are made and based on behperspective')uthoritarian- Participative De%egative/

2. Transactional Leadership is based on re

re%ationship between %eaders and +o%%owe%eaders organise the subordinates wor5 so th job is carried out e>ective%y/

3. Transormational leaders is charactericharisma- inspirationa% motivation- int

simu%ation and individua%ised consideration/


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• Since no sing%e %eadership sty%e that indicates the most appsty%e to a%% situations researchers have e9p%ored various peo+ %eadership approaches in their study/

• $his study however attempts to high%ight the re%ationship o%eadership sty%es and trans+ormationa% %eadership sty%e with

• )s c%assica% %eadership sty%es are very in@uent in ,a%aysiancompanies- the Auestion is whether c%assica% %eadership styappropriate enough to trans+orm and ma5e great changes %ogistics companies/

• Thus! this study also proposes the lin" #et$een

transormations leadership style and organizationalperormance/ $his is because trans+ormationa% %eaders arcreate great change in both +o%%owers and the organi8ation%eadership sty%e has a%so attracted a great dea% o+ attentionresearchers


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Literature Review' ?rgani8ationper+ormance

Barious measures o+ organi8ationa% per+ormance have beeand suggested by researchers/ .t has been +ocused on ecand organisationa% perspective/

• $he economic perspective is concerned with the e9terna%such as Crms competitive positioning and the Cnancia% as

• $he organi8ationa% perspective inc%udes the interna% envir

which inc%udes Aua%ity o+ services 6such as emp%oyee satiand customer satis+action7 Aua%ity o+ product and compet

• )%though- severa% attempts by researchers have been maprovide a c%ear deCnition o+ organi8ationa% per+ormance- hthere is no conc%usive deCnition in terms o+ some aspects


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Leadership Sty%e and organi8atiper+ormance' Literature review• 0umerous studies have +ound that %eadership has a positive e>ect on o

per+ormance despite a signiCcant impact and in@uence on individua% anorgani8ations/

• )ccording to artog and Koopman 62!!27- transactiona% and trans+orma%eadership sty%es have been +ound to be re%ated to emp%oyee satis+actioper+ormance- organi8ationa% e>ectiveness- emp%oyee turnover and custsatis+action/

• Pre+erences on the %eadership sty%es in the %ra# $orld- +or e9amp%e w

in@uenced by )rab cu%ture and the in@uence o+ .s%amic and triba%istic vabe%ie+s 6Eouse+- 2!!!7F Eouse+ 62!!!7 suggests that )rab cu%ture nurtureconsu%tative and participative %eadership sty%esF

• Li5ert and Li5ert 61#7 argue that the participative sty%e is more producu%ture and environment/ $oor and ?+ori 62!!#7 conc%ude thatthere is no best %eadership sty%e in a%% situations and it is diHcu%t to detbest %eadership sty%e/


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Research ?bjective

•

$o ;9amine the re%ationship between Leadershipand ?rgani8ationa% Per+ormance

• $o study the in@uence o+ Leadership Sty%e on?rgani8ationa% per+ormance/

• .t a%so determined the most important %eadershi

that in@uences organi8ationa% per+ormance/


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&ypothesis

• &1a' $here is a positive and signiCcant re%ationship betw

autocratic sty%e %eadership and organi8ationa% per+orman• &1#'$here is a positive and signiCcant re%ationship betw

participative %eadership sty%e and organi8ationa% per+orm

• &1c'$here is a positive and signiCcant re%ationship betwde%egative %eadership sty%e and organi8ationa% per+orman

•&2a'$here is a positive and signiCcant re%ationship betwtrans+ormationa% %eadership aspect o+ charisma andorgani8ationa% per+ormance

• &2#'$here is a positive and signiCcant re%ationship betwtrans+ormationa% %eadership aspect o+ inspirationa% motivand organi8ationa% per+ormance


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• &2c'$here is a positive and signiCcant re%ationship betweetrans+ormationa% %eadership aspect o+ inte%%ectua% stimu%atorgani8ationa% per+ormance

•

&2d'$here is a positive and signiCcant re%ationship betweetrans+ormationa% %eadership aspect o+ individua% consideraorgani8ationa% per+ormance

• &3'=%assica% %eadership sty%e o+ autocratic- participative ande%egative wi%% in@uence signiCcant%y on organi8ationa% per

• &4'$rans+ormationa% %eadership sty%e aspect o+ charisma-

inspirationa% motivation- inte%%ectua% stimu%ation and indiviconsideration7 wi%% in@uence signiCcant%y on organi8ationaper+ormance

• &('$rans+ormationa% %eadership sty%e wi%% have more impacc%assica% %eadership sty%e on organi8ationa% per+ormance


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)esearch *ethadology

•

Sample and procedure+ Participants in the stumanageria% sta> in ,a%aysian %ogistics companie2!! se%+ administered Auestionnaires were distrithe sta>/ $he 13! useab%e Auestionnaires werethe statistica% ana%ysis representing a response

3I +rom the samp%e/ $he se%ection o+ the respwas based on the random samp%ing/


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Detai%s o+ Participants


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*easurement

•

$he independent variab%e o+ the study was %esty%es/ Leadership sty%es consists o+ 1 items ameasured based on seven dimensions: three %eadership sty%es 6autocratic- participative- de%eg%aisse8 +aire7 and +our trans+ormationa% %eadership6charisma- inspirationa% motivation- inte%%ectua% stiand individua% consideration7 deve%oped by the reand adapted +rom =%ar5 61J7F Respondents weto response the Auestionnaires on a range +strong%y disagree to ' strong%y agreeF


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• ?rgani8ationa% per+ormance was the dependent o+ this study/ ?rgani8ationa% per+ormance which o+ seven items was measured based on non'

aspects: emp%oyee satis+action and csatis+action/ $he Auestionnaire was deve%opedauthor and adapted +rom Rosen8weig et a/ 62!King and (eitham% 62!!17

• $he response options +or emp%oyee satis+act

customer satis+action items were based on a Li5ert'sca%e ranging +rom 1 ' strong%y disagrestrong%y agreeF $he re%iabi%ity coeHcient +ororgani8ationa% per+ormance components was ?/


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Resu%ts:1/ $he re%ationship between %eadership sty%es and organi8a

per+ormance'61a'1c 2a'2c7

$ab%e 2 shows the mean standard deviation- variab%es and o+ items in the study/ .t a%so depicts the re%iabi%ity coeHciethe variab%es ranges +rom !/J1'?/3 which concurs with 0minimum acceptab%e %eve% o+ !/!/ ,eanwhi%e- $ab%e shcorre%ation ana%ysis o+ the study variab%esF


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Resu%t 1 continued

•

$ab%e shows a%% independent variab%es are positivcorre%ated with ?P/

• $hus a%% dimensions o+ c%assica% and trans+ormation%eadership are corre%ated to each other and are posre%ated to ?P/

•

$hus a%% the hypothesis61a'1c 2b'2c7 were so a%% components to c%asica% and trans+ormationa% sty%es signiCcant%y enhance ?P o+ ,a%aysian Logist.ndustry/


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Resu%t 2' $he in@uence o+ c%assi%eadership sty%e on ?P 67•

?n%y two c%assic %eadership sty%es had a positivesigniCcant e>ect on ?P 6Participative and De%ega

• owever )utocratic sty%e indicates no signiCcanton ?P

• $hus the data did not provide +u%% support +or hy

since autocratic sty%e had no signiCcant impa is partia%%y e9cepted/

• Participative emerged as the most important sty


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Resu%t '$he in@uence o+ trans+ormationa% %eadsty%e on organi8ationa% per+ormance 6"7

•

)%% aspects o+ the trans+ormationa% %eadership hapositive and signiCcant e>ect on ?P6=harisma-inspirationa% motivation- individua% considerationinte%%ectua% stimu%tion7

• =harisma resu%ted to be the most signiCcant am+our/

• $his hypothesis is accepted and +u%%y supported/


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Resu%t "'$rans+ormationa% %eadership whave more impact than c%assica% %eadesty%es on organi8ationa% per+ormance

• $ab%e " shows the regression c%assica% %eadership sty%es and

trans+ormationa% %eadership storgani8ationa% per+ormance

•F $ab%e " showed that the varorgani8ationa% per+ormance by%eadership sty%es was 2I whe9p%ained by trans+ormationa%%eadership sty%e in organi8atiowas 3!IF

• $he resu%t indicates that the ae9p%ained by trans+ormationa%%eadership sty%e on organi8atiois higher than by c%assica% %ead

•

$hus- the 3 o+ the study wa


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=onc%usions 62!!71/ $his study revea%ed that on overa%% trans+ormationa% %eade

had a more signiCcant e>ect than c%assica% %eadership sty%organi8ationa% per+ormance

2/ $he resu%ts a%so imp%y that %eaders in ,a%aysian %ogistics cneed to have vision- ab%e to communicate the vision and hcapabi%ity to inspire their +o%%owers towards changes in org

/ $he resu%t a%so imp%y that the %eaders in these companies

have vision- abi%ity to communicate the vision and inspire +o%%owers towards change in organisation/

"/ $rans+ormationa% Leadership emerged as the most signiCcachieving organi8ationa% per+ormance/


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Paper Re+erence

• )d%er- 0/- 2!!2F .nternationa% Dimensions o+ ?rgani8ationa% &ehavior/ "th ;dn/- South Pub%ishing- =incinnati ?/

• )nderson- ;MF- =/ *ome%% and D/R/ Lehmann 1"/ =ustomer satis+action mar5et sharproCtabi%ity: Cnding +rom Sweden/ ,anag / Sci/- : 323'3"1

• )nderson 4/= /- , Rungtusanat%%am- R G/ Schroeder and SF Devaraj- 13/ ) path ana%theory o+ Aua%ity management under%ying the deming management method: Pre%iminCndings/ pee%sN ion Sci// - 2#: #'#3/

• &arney- 4F- 11 *irm resources and sustained competitive advantageF 4/ ,anage/- 1

•

&arney- 4/&/- 1J#F Strategic +actor mar5ets: ;9pectations- %uc5 and business strategySci/- 2: 121'12"1

• &ass- &F,- 1J3/ Leadership and Per+ormance &eyond ;9pectations/ $he *ree Press- 0.S&0'1:J'!!2!1J1!1- Pages: 23#F

• &ass- & ,- 1 / Does the trans+ormationa%'transactiona% %eadership paradigm transcorgani8ationa% andinternationa% boundariesF )m/ Psych/- 32: 1!'1/

The Infulence of Leadership Styles on Organisational Performance of Logistics Company

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